FRPT Dividend Type Payments

Although FRPT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Freshpet, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Freshpet, Inc (FRPT)

Bid

Ask

Last

Change

Volume

P/E

Market Cap

29.00

45.00

34.85

+0.75

217K

-

0.0B

FRPT Dividend-Like Income Using Covered Calls

With FRPT at 34.85, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield

Annual Premium

Cents/Day

3%

1.05

0.3

5%

1.74

0.5

10%

3.49

1.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples: